Why the Country Lost Its Taste for the Pizza Hut Chain

At one time, the popular pizza chain was the top choice for groups and loved ones to indulge in its unlimited dining experience, unlimited salad bar, and make-your-own dessert.

However fewer patrons are choosing the brand these days, and it is shutting down half of its UK restaurants after being acquired following financial trouble for the second occasion this year.

It was common to visit Pizza Hut when I was a child,” explains one London shopper. “It was a tradition, you'd go on a Sunday – turn it into an event.” But now, aged 24, she states “it's not a thing anymore.”

According to young customer Martina, some of the very things Pizza Hut has been known and loved for since it opened in the UK in the 1970s are now less appealing.

“The manner in which they do their all-you-can-eat and their salad station, it appears that they are cutting corners and have inferior offerings... They're giving away so much food and you're like ‘How?’”

Since ingredient expenses have soared, Pizza Hut's unlimited dining format has become quite costly to maintain. As have its outlets, which are being cut from 132 to 64.

The company, similar to other firms, has also seen its expenses increase. Earlier this year, labor expenses rose due to higher minimum pay and an increase in employer social security payments.

Chris, 36, and Joanne, 29 say they used to go at Pizza Hut for a date “every now and then”, but now they choose Domino's and think Pizza Hut is “very overpriced”.

According to your choices, Pizza Hut and Domino's costs are similar, notes an industry analyst.

Although Pizza Hut provides off-premise options through third-party apps, it is losing out to larger chains which focus exclusively to off-premise dining.

“Domino's has succeeded in leading the delivery market thanks to strong promotions and constantly running deals that make customers feel like they're finding a good deal, when in reality the original prices are quite high,” notes the expert.

Yet for these customers it is justified to get their special meal sent directly.

“We definitely eat at home now rather than we eat out,” comments Joanne, echoing latest data that show a decline in people visiting informal dining spots.

Over the summer, informal dining venues saw a 6% drop in customers compared to the previous year.

Additionally, another rival to pizza from eateries: the cook-at-home oven pizza.

A hospitality expert, senior partner at an advisory group, explains that not only have supermarkets been selling premium prepared pies for quite a while – some are even promoting countertop ovens.

“Evolving preferences are also contributing in the success of fast-food chains,” comments Mr. Hawkley.

The growing trend of protein-rich eating plans has driven sales at poultry outlets, while affecting sales of carb-heavy pizza, he continues.

As people visit restaurants more rarely, they may prefer a more premium experience, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more old-fashioned than upmarket.

The rise of high-quality pizzerias” over the last decade and a half, including popular brands, has “completely altered the consumer view of what quality pizza is,” notes the industry commentator.

“A crisp, airy, digestible pizza with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's caused Pizza Hut's struggles,” she comments.
“What person would spend nearly eighteen pounds on a small, substandard, disappointing pizza from a large brand when you can get a beautiful, masterfully-made Margherita for under a tenner at one of the many traditional pizzerias around the country?
“It's an easy choice.”
An independent operator, who owns a small business based in Suffolk explains: “The issue isn’t that fallen out of love with pizza – they just want better pizza for their money.”

Dan says his adaptable business can offer premium pizza at accessible prices, and that Pizza Hut had difficulty because it could not keep up with new customer habits.

From the perspective of a small pizza brand in a UK location, the proprietor says the industry is expanding but Pizza Hut has not provided anything fresh.

“Currently available are slice concepts, London pizza, New Haven-style, sourdough, wood-fired, rectangular – it's a wonderful array for a pie fan to discover.”

Jack says Pizza Hut “should transform” as the youth don't have any fond memories or allegiance to the brand.

In recent years, Pizza Hut's share has been divided and spread to its trendier, more nimble alternatives. To keep up its costly operations, it would have to increase costs – which experts say is challenging at a time when household budgets are tightening.

The leadership of Pizza Hut's global operations said the acquisition aimed “to protect our guest experience and retain staff where possible”.

The executive stated its immediate priority was to continue operating at the remaining 64 restaurants and off-premise points and to assist staff through the transition.

But with large sums going into operating its locations, it likely can't afford to invest too much in its off-premise division because the sector is “difficult and working with existing delivery apps comes at a cost”, commentators say.

But, he adds, lowering overhead by withdrawing from competitive urban areas could be a effective strategy to adapt.

Debra Johnston
Debra Johnston

Automotive journalist with over a decade of experience covering tech innovations and trends in the car industry.